The United States Securities and Exchange Commission (SEC) announced on Tuesday that it has filed a lawsuit against Elon Musk, CEO of Tesla and SpaceX, accusing him of breaching federal securities regulations during his acquisition of Twitter shares in 2022. According to the SEC, Musk failed to promptly disclose his acquisition of more than 5% of Twitter's publicly traded common stock in March 2022, an omission that the regulatory body claims was a violation of U.S. securities law.

This delay in disclosure purportedly allowed Musk to benefit financially by paying an artificially lower price for the shares before fully acquiring the company, now rebranded as X. The SEC's statement highlights that Musk's actions enabled him to avoid paying an estimated $150 million more for the Twitter stock he purchased after missing the deadline for declaring beneficial ownership.

This lawsuit represents ongoing legal scrutiny over Musk's controversial acquisition of Twitter, as previously, in October 2024, the SEC initiated legal proceedings intending to compel Musk to provide testimony as part of its investigation into the takeover.

Notably, despite numerous postponements, Musk has not complied with subpoenas to attend the deposition mandated by a federal judge in February 2024.

Elon Musk's attorney, Alex Spiro, responded to previous legal actions by acknowledging that Musk's testimony had been obtained on several occasions during what he described as a 'misleading investigation,' affirming, 'Enough is enough.' While the Associated Press sought clarification from Spiro regarding the new lawsuit, no immediate response was received.

The ongoing legal scenario reflects the complexities associated with high-profile corporate acquisitions, especially those conducted by figures such as Elon Musk.

As the situation develops, it underscores the challenges regulatory entities face in monitoring transactions and ensuring compliance with financial regulations on a global scale.